Tesco’s existing ‘price promise’ scheme gives customers a voucher to use on future visits if their basket of goods, consisting of branded and non-branded items, could have been purchased more cheaply at its big four rivals, Wal-Mart’s Asda, Sainsbury’s, and Morrisons.
Under Tesco’s new ‘brand guarantee’ scheme, launched yesterday, if a customer’s branded grocery shop would have been cheaper elsewhere, they will automatically get the difference deducted off their bill immediately, in-store or online.
The scheme will also price-match against promotions at Tesco’s main competitors. However, Tesco has dropped own-label goods from its price-matching scheme.
The group, which posted a more than halving in first-half profit last week, is seeking to regain market share lost to the discounters, Aldi and Lidl, with lower and simpler pricing, improved product availability and better customer service.
Chief executive Dave Lewis has said their will be more price cuts in the run-up to Christmas. Last October, Sainsbury’s dropped Tesco from its ‘brand match’ scheme, benchmarking prices only with Asda.